REPUBLIKA.CO.ID, NEW YORK - Oil prices in New York slid to a new multi-year low on Wednesday (16/12) after US data showed a big increase in petroleum stockpiles and higher levels of key petroleum products.
US benchmark West Texas Intermediate for January delivery fell 1.83 US dollars to 35.52 US dollars a barrel on the New York Mercantile Exchange, its lowest closing price since February 2009. In London, Brent crude for January delivery lost 1.26 US dollars do at 37.19 US dollars a barrel.
A weekly petroleum inventory report from the US Department of Energy showed that crude supplies rose by 4.8 million barrels in the week ending, Friday (11/12).
The report also showed higher levels of gasoline and distillate fuel supplies, as well as a rise in oil stored at Cushing, Oklahoma, a widely watched trading hub.
"In terms of the crude move today it was really a very bearish report. There was nothing to provide any sort of buying interest," said analyst at ClipperData, Matt Smith as quoted from channelnewsasia.com
Oil prices have fallen from more than 100 US dollars a barrel in July 2014 due to high output from the US and key Middle Eastern oil producers.
Oil also has stayed under pressure from decisions by the Organisation of the Petroleum Exporting Countries against enacting output cuts despite falling prices.
As expected, the US Federal Reserve announced its first interest rate increase since 2006, raising its near-zero benchmark federal funds rate by a quarter point to 0.25-0.50 per cent.
The Fed's move has been seen as modestly bearish for oil because it will bolster the US greenback, making dollar-denominated oil more expensive in international markets.
"I have been surprised by further downward movement in oil prices. However, I projected oil prices would stabilize," said The Fed's Chair Janet Yellen.
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